SB 21, Texas attempt to create a state-level Bitcoin Reserve, passed its second House reading with overwhelming support. It will require one more vote and Governor Abbott’s signature to become law.
This bill has taken components from other successful efforts, such as New Hampshire’s mechanism to add new tokens into the Reserve. Currently, Texas would permit altcoins that maintain a $500 billion market cap for two entire years.
Texas May Pass a Bitcoin Reserve
Since President Trump first endorsed the concept, several US states have been pursuing their own local Bitcoin Reserves. Shortly after Trump’s Inauguration, Texas’ Lieutenant Governor called a Bitcoin Reserve a top priority.
Since then, bill SB 21 sailed through committee and the Senate, and it has almost reached the governor’s desk:
“Texas’ Strategic Bitcoin Reserve bill passes House second reading. SB 21 passed by a vote of 105 – 23. SB 21 was also amended to increase the length of time a digital asset’s market cap is under consideration for inclusion in the bill, from 12 to 24 months…making it harder to qualify,” a pro-crypto policy watchdog claimed.
Texas’ effort has adopted many characteristics from other Bitcoin Reserve bills nationwide. New Hampshire was the first to get a bill cemented into law, and it shares similar language.
Although ostensibly a Bitcoin reserve, it also permits other assets, provided they have a $500 billion market cap. SB 21 also features this, albeit with the aforementioned 24-month restriction.
Today’s advancement doesn’t represent a complete victory. Texas’ legislative session ends on June 2, and SB 21 needs to pass a final vote by then to establish a Bitcoin Reserve. Still, the bill’s overwhelming support is encouraging.
Theoretically, the final step could take place this week, and Governor Greg Abbott is a long-time Bitcoin supporter.
Between bipartisan votes and gubernatorial support, Texas’ Bitcoin Reserve seems very likely. However, anything could happen.
Arizona’s governor technically signed a law allowing the state to hold BTC, but she vetoed two bills that would actually enable the purchases. Florida’s effort also showed early bipartisan support, but its Reserve bills didn’t progress very far.
These incidents show the importance of not taking anything for granted, despite optimistic signals. Most state Bitcoin Reserve proposals have failed so far, and Texas’ SB 21 would be one of the very few survivors if it succeeds.
Still, the GENIUS Act’s success despite fierce opposition contains a valuable lesson, too. The crypto industry’s political support remains very strong.
